Page:United States Statutes at Large Volume 72 Part 1.djvu/1655

 72 STAT.]

PUBLIC LAW 8 5 - 8 6 6 - S E P T. 2, 1958

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For purposes of determining the ownership of stock in applying subparagraph (B), the rules of subsection (c) of section 267 shall apply, except that the family of an individual shall include only his spouse, ancestors, and lineal descendants. "(c) REASONABLE CERTAINTY TEST.—In any case in which neither subsection (a) nor subsection (b) applies, the determination as to the amount allowable to a lessee as a deduction for any taxable year for exhaustion, wear and tear, obsolescence, or amortization— "(1) in respect of any building erected (or other improvement made) on the leased property, or " (2) in respect of any cost of acquiring the lease, shall be made with reference to the term of the lease (excluding any period for which the lease may subsequently be renewed, extended, or continued pursuant to an option exercisable by the lessee), unless the lease has been renewed, extended, or continued or the facts show with reasonable certainty that the lease will be renewed, extended, or continued." (b) TECHNICAL AMENDMENT.—The table of sections for such part VI is amended by adding at the end thereof the following: '•Sec. 178. Depreciation or amortization of improvements made by lessee on lessor's property." (c) EFFECTIVE DATE.—The amendments made by this section shall

apply with respect to costs of acquiring a lease incurred, and improvements begun, after July 28, 1958 (other than improvements which, on July 28, 1958, and at all times thereafter, the lessee was under a binding legal obligation to make). SEC. 16. MEDICAL, DENTAL, ETC., EXPENSES IN CASE OF DECEDENTS. Section 213(d)(2)(A) (relating to medical, dental, etc., expenses in the case of decedents) is amended by striking out "claimed or". SEC. 17. INCREASE IN LIMITATION ON MEDICAL DEDUCTION FOR A TAXPAYER OR HIS SPOUSE WHO HAS ATTAINED AGE 65 AND IS DISABLED. (a) INCREASE OF LIMITATION TO $15,000.—Section 213 (relating to deduction for medical, dental, etc., expenses) is amended by adding at the end thereof the following new subsection:

26 USC 213.

" (g) MAXIMUM LIMITATION I F TAXPAYER OR SPOUSE H A S ATTAiNia) AGE 65 AND I S DISABLED.— "(1) SPECIAL RULE.—Subject to the provisions of paragraph

(2), the deduction under this section shall not exceed— " (A) $15,000, if the taxpayer has attained the age of 65 before the close of the taxable year and is disabled, or if his spouse has attained the age of 65 before the close of the taxable year and is disabled and if his spouse does not make a separate return for the taxable year, or " (B) $30,000, if both the taxpayer and his spouse have attained the age of 65 before the close of the taxable year and are disabled and if the taxpayer files a joint return with his spouse under section 6013. " (2) AMOUNTS TAKEN INTO ACCOUNT.—For purposes of paragraph (1)— " (A) amounts paid by the taxpayer during the taxable year for medical care, other than amounts paid for— " (i) his medical care, if he has attained the age of 65 before the close of the taxable year and is disabled, or "(ii) the medical care of his spouse, if his spouse has attained the age of 65 before the close of the taxable year and is disabled,

26 USC 6013.

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